Research In Motion Stock (RIMM) Getting Crushed Today

Research in Motion stock price is spiraling downward at the time of this posting, down 16.41% or -$9.36 per share off yesterdays close at $57.04. It’s still early, but, it is looking like it could be a pretty rough day for RIM.

Such day to day volatility usually means nothing; what matters is the longer term trend. RIM announced they would come in at the low end of expectations for Q4, and the market overreacted, which they tend to do in this environment.

RIM is still adding subscribers…it appears that existing subscribers are not upgrading as much as they used to, but that’s normal in this environment. But given time, customers will upgrade. What matters now is that subscribers are still growing.

In a time of economic difficulty, any negative statement will have an effect on its stock price. In this case, Rim basically said it would come in on the low end of a 300 million gap. 200 million short of the streets high end revenue expectations. The market is just very sensitive and will react harder than it has in the past. People are paranoid right now with their money.